Many clients of The Wolf Law Group desire to provide or improve pension benefits for those key employees who are directly responsible for profitability. We assist our clients in achieving these goals by designing and preparing “discriminatory” non-qualified pension plans. We present various options to the client and tailor-make the program to fit the particular needs of the client and the selected employees. We assist clients to insure that the plan is in compliance with Section 409A of the Internal Revenue Code, as amended.
For our clients who want to give their executives a sense of sharing in equity, but do not wish to issue stock, we have implemented “phantom stock plans” or “stock appreciation rights plans,” which provide executives with contractual benefits measured by the increase in the value of corporate shares.
Since the distribution of shares to employees has significant corporate and tax ramifications, our team works to fully inform clients about important issues, such as the rights of minority shareholders, the dilutive effect of plans on corporate earnings, buy-back provisions upon termination of employment, valuation issues, securities law issues, and the tax and financial impact of the plans on the sponsoring employer and the key executives.
The Wolf Law Group, P.C. has significant expertise in the tax (income and estate) and income aspects of structuring life insurance programs for key executives, including split dollar life insurance and insurance bonus programs. The Wolf Law Group, P.C. plays an active role in assisting clients and their life underwriters in the following areas: selecting the most appropriate carrier, product, and financing method for the product; allocating premium payments between the employer and employee; implementing the most effective tax structure for the plan; minimizing income tax to the employer and estate tax to the executive, and ensuring ERISA compliance.